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LAWSUITS NEWS & LEGAL INFORMATION

California Traffic Spending

Orange County, CA: (Apr-07-08) Contractor Granite-Myers-Rados brought a lawsuit against the Orange County Transportation Authority, over unexpected costs incurred on the 22 Freeway-widening project. Court records show that the suit originally sought $93 million to cover the cost of additional work that included excavating bad soil under the freeway. Following several sessions of mediated negotiations, the Orange County Transportation Authority agreed to pay $39.3 million to avoid a court trial, and the costs and risks associated with litigation.

Sources stated that if the freeway had been correctly built in the 1960s, the bad soil would not have developed, and there would've been no lawsuit. The transportation authority stated that it has to tap into Measure M funds for the $39.3 million it agreed to pay Granite-Myers-Rados. The money will be taken from a $130 million fund, that has funds for close-out costs on the 22 and Interstate 5 widening projects and reserves for economic uncertainties. [ORANGE COUNTY REGISTER: MEASURE M WILL FUND $39.3 MILLION FREEWAY SETTLEMENT]


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Published on Apr-8-08


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